ipl-logo

Keurig Value Chain

846 Words4 Pages

Keurig Green Mountain Inc. Coffee ranked second only to petroleum in world trade in 2013, with the United States being the largest importer, and Brazil, Vietnam and Indonesia being the largest producers (Treadway, 2015). Despite a complicated global commodity chain, coffee remains a lucrative and competitive business with many players. Exemplifying this fact, Keurig Green Mountain Inc., manufacturers of the Keurig coffee brewer and single-serve coffee pods known as K-cups, was recently bought by German investment company JAB Holding Company (Gasparro, 2015). Keurig History The Keurig coffee brewer, whose name means excellence in Danish, was originally designed by two engineers in the earlier 1990s to produce a premium single-serve cup …show more content…

The new owners will review the segregated functions along the value-chain of the manufacturing company with a fresh perspective. According to Blocher et al. (2016), identifying opportunities to add value as well as reduce costs are additional steps included in the value analysis. Since 2012, JAB Holdings acquired other U.S. coffee companies including Caribou Coffee Co, Peet’s Coffee and Intelligentsia, to name a few (Gasparro, 2015). In light of these acquisitions, incorporating economies of scale within the coffee supply chain could reduce costs for the German holding company. Furthermore, Fearne et al. (2012) elaborate on the shift in thinking from a “minimum dependency on suppliers…to maximize the scope for leverage over price, to mutual leveraging of skills and resources across supply lines to deliver both efficiency and effectiveness” (p. …show more content…

(p. 124). Along these lines, the original Green Mountain Keurig ownership incorporated a sustainability commitment within their company. As a key competency of the former company that attracted consumers and suppliers, the new ownership, JAB Holdings, should maintain or increase this strategic focus within their value chain. According to Russell and Varon (2015), Green Mountain was the largest purchaser in the world of fair trade-certified coffee, benefiting the small coffee grower stakeholders in the tropics, as well as satisfying consumers increased awareness of their

Show More
Related

Mkt/421 Week 3 Individual Assignment

713 Words | 3 Pages

For any business, value creation is their number one goal (Hillstorm, 2017). By creating value on behalf of the customer will help a business sell their products and their services (Hillstorm, 2017). If BestValue sells their products and services stock prices will go up and they will have an investment in capital resources for operations (Hillstorm, 2017). The value creations BestValue would rely on the most would be innovation, customers, ideas, and their brand (Hillstorm, 2017).

Read More

Keurig Mission Statement

689 Words | 3 Pages

Keurig is known for its convenience factor and high quality coffee. In order, to maintain and grow our market share it will be essential for our business to adopt to the demands of the millennials who are increasingly concerned about sustainability and are accustom to timely, if not instant, gratification. Therefore, it is going to be our goal in creating a recognizable Keurig product that reflects these ideals. It is for that reason our new product will be called Keurig E-Smart.

Read More

Porter's Five Forces Analysis Of Chipotle

911 Words | 4 Pages

The impact of suppliers in Chipotle case is that they have weak bargaining power based on the following external factors: • Large number of suppliers (Low) • Low forward vertical integration (Low) • High overall supply (Low) The large population of suppliers is tied to Chipotles “Food with Integrity” mission which accounts for 22 independently owned and operated distribution centers. (Subramanian, 6) By 2012 they had grown locally sourced farm produce to 10 million pounds. (Subramanian, 6) it weakens the effect of individual suppliers on Chipotle.

Read More

Kold Machine Case Summary

348 Words | 2 Pages

1) The Kold machine that will be sold by Keurig will have many features that will distinguish it from other company's. One of these features would be to its pods. These pods contain to chambers, one consisting of syrup and the other consisting of small beads to carbonate the water. The benefit to this is that it has not been seen by the market yet.

Read More

Horizontal Acquisition Of Verizon

132 Words | 1 Pages

Acquisition created value in a number of ways but it is only successful when it fit with corporate strategy of the organization. In the case of the horizontal acquisition of Verizon it creates value through industry attractiveness which created a mutual forbearance that led to higher prices and profits in all the markets. (PG 129) Values is also created through resources such as the amount of customers Verizon can attract to its products not only wireless but other data services it currently provided. While financially having Verizon wireless under it Verizon communication they do not have to share any profits but can use it internal on research and development.

Read More

Summary: Should The United States Regulate Coffee In The US

806 Words | 4 Pages

Due to the large demand for coffee in the U.S. “Coffee is the US's largest food import and second most valuable commodity only after oil.” According to the International Coffee Organization. As a result of this the United States government places regulations on coffee, from the importing process, all the way to labeling the coffee consumers in the U.S. drink.

Read More

Sunflower Nutraceuticals Case Study

1937 Words | 8 Pages

This creates shareholder value by allowing the return to be stimulated by the assets and equity of the company. The return on the assets and equity of the company can be directly correlated with operational efficiency, return on investments, and overall optimal business decisions. SNC was able to continually create value in each of the three phases through pre and post strategic financial analysis that enabled leadership to make beneficial decisions. Leadership learned that although there are many decisions to make within the short term, a vision of long-term sustainable growth is critical to the success of a business. If management had the ability to redo the three phases, a similar approach would be taken.

Read More

Research Paper On The Cappuccino Trail

584 Words | 3 Pages

With Brazil, Colombia and Vietnam combined they make up about 50% of the worlds coffee market shares All of the worlds coffee is grown in the souther part of the world. However, coffee is mostly utilized in the northern part of the world. The largest coffee consumer is Europe. surprisingly, Europe consumes about 40% of the worlds coffee consumption. The United States and Japan follow Europe with 34% of the worlds coffee

Read More

Macroeconomic Factors Affecting Starbucks

707 Words | 3 Pages

Political • Growing demand and supply shortage has increased world coffee prices. • Favorable advantage to accessing raw material through supplier relationships. • Fair-trade practices include its Coffee and Farmers Equity (C.A.F.E.) program among other fair trade policies and agreements. • Starbucks adheres to local, national and international government laws and policies and tightly control labour practices, avoiding scrutiny and negative imagery from being a large corporation. Economic • High industry sensitivity to the macroeconomic factors affecting disposable income, a main industry driver.

Read More

Fair Trade Coffee Swot Analysis

1991 Words | 8 Pages

I don’t drink coffee but many people I know drink coffee everyday but they never concern about the fair trade. While Starbucks try to promote that they

Read More

Pestel Analysis Of The Pestle Analysis On Starbucks

1288 Words | 6 Pages

High capital requirements makes other firms suffer in the industry. This component needs high necessities for any other company for approaching in the competition with Starbucks. Barriers to success are high whereas entry barriers are

Read More

Ethical Issues In Starbucks

831 Words | 4 Pages

Ethical issue in Starbucks Starbucks, an American coffeehouse chain based in Seattle, Washington, is the world largest coffee retailer chain in the world having more than 21,000 stores in 65 countries (Starbucks website, n.d.). In United States, Starbucks owned 12,973 stores (Starbucks Company Statistics, 2014), which is more than 73% of the market shares of the United States coffeehouse industry. Hence, Starbucks possesses monopoly power in the specialty coffee market. Enjoying monopoly position, Starbucks plan to completely dominate the market by eliminating competition. Starbucks engages in a range of anti-competitive activities.

Read More

Porter's Five Forces Analysis: Calm Coffee

707 Words | 3 Pages

New entrants have ability against Calm Coffee because of the affordable costs of operation business and supply chain development. However, new entrants are difficult that to established brands completely like Calm Coffee because it is very expensive to develop a strong brand. So, this part of the 5 Forces analysis indicates that the threat of new entrants should put on a secondary priority in Calm Coffee’s

Read More

Starbucks Csr Analysis

704 Words | 3 Pages

Practices, it helps farmers grow coffee bean better for people and the planet. Also, Starbucks aim their coffee certified or verified by an independent third party from 100%. Moreover, Starbucks is a fair trade to farmers and maintain high-quality coffee. It is development society and environment responsibility (Coffee Sourcing).

Read More

Green Mountain Coffee Research Paper

451 Words | 2 Pages

K cups offer a proportionate blend of coffee in individual pods that can be used to brew a single cup of coffee instantly. All you have to do is pick up a Keurig cup containing your favorite flavor blend of coffee and place it in the Keurig coffee maker. Just pressing a button yields a steaming cup of delicious

Read More

More about Keurig Value Chain

Open Document